ITIL Service Strategy Processes Explained | ITIL Foundation | ITSM

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What is ITIL Service Strategy Process Module?  

As shown in the ITIL Service Lifecycle diagram, ITIL Service Strategy (SS) is the center and origin point of the ITIL Service Management Lifecycle.

As defined in ITIL V3, it focuses on helping IT organizations to improve and develop over the long term. Moreover, the Service Strategy module of ITIL helps determine which types of services should be offered to which customers or markets. This is a market-driven Lifecycle stage.

The Service Strategy stage of ITIL also describes 4 P's that are essential for the successful execution of this module. Those are Perspective, Position, Plan, and Pattern.

[See Also: Understanding 4 P's of Service Strategy in details

ITIL V3 Service Strategy Goal: 

The goal of ITIL Service Strategy (SS) is to help service providers to operate and grow successfully in the long-term and provide the ability to think and act in a strategic manner.

It also provides guidelines to investors to determine and prioritize investment decision on different services based on their possible outcome.

ITIL Service Strategy Objective: 

The objective of ITIL Service Strategy is to make a decision on the strategy to serve customers.

The activity starts with the assessment of customer needs and the marketplace. Afterward, This stage helps to determine the services, that the IT organization is to offer to the customer and what capabilities are needed to be developed for that.

Its ultimate objective is to make the IT organization think and act in a strategic manner.

ITIL Service Strategy Processes: 

According to ITIL V3 best practice, there are five main processes under ITIL Service Strategy process module:

1> Strategy Management for IT Services:

Used to assess the service provider's offerings, capabilities, and competitors. It also helps evaluate current and potential market openings in order to develop a strategy to serve customers.

Once the strategy is defined, Strategy Management for IT Services is also responsible for ensuring the implementation of the strategy.

2> Service Portfolio Management:

It is used to manage the service portfolio. Service Portfolio Management helps to determine that the service provider has the right mix of services, and that can achieve the required business outcomes at an appropriate level of investment.

3> Financial Management for IT Services:

This process is all about managing the service provider's budgeting, accounting, and charging requirements.

4> Demand Management:

This process is responsible for evaluating, anticipating and influence customer’s demand for services. Demand Management works side by side with Capacity Management to ensure that the service provider has sufficient capacity to meet the required demand.

5> Business Relationship Management:

This process is one of the many crucial processes in ITIL Service Strategy. It ensures to have a positive relationship maintained with customers.

Business Relationship Management identifies customer needs and ensures that appropriate services are developed to meet those needs.

The following image shows how these processes are connected to each other.

ITIL Service Strategy Process Flow

ITIL Service Strategy Roles and Responsibilities: 

The Important roles defined in Service Strategy (ITIL V3) are as follows:

  • IT Steering Group (ISG)
  • Service Strategy Manager
  • Service Portfolio Manager
  • Financial Manager
  • Demand Manager
  • Business Relationship Manager
  • Strategy Analyst
  • Finance Analyst
  • Demand Analyst

We have a detailed article describing everything about these roles of ITIL Service Strategy Module. Refer to: ITIL Roles Defined in Service Strategy.


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I'm passionate about Information Technology & spreading my knowledge makes me happy. I Have MBA(IS), ITIL, PRINCE2, CCNA, CCNP, MCSA, MS Hyper-V Certifications, and Trained in PMP, CCIE. And also have 10+ Yrs of Work Experience.
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